fiscal cliff

Biting Our Collective Nails

Our leaders are being irrational. Once again Americans are approaching a “fiscal cliff” and we’re waiting to see if Congress and the White House will reach a compromise that prevents another recession. I’m not sure if this irrationality is “unintentional” or if it’s being used as a strategy in the game of chicken between Democrats and Republicans. In one version of that game, two drivers speed toward each other and certain mutual destruction, and the one who swerves to avoid collision at the last minute is considered a coward. It can be smart (even rational) for one player to signal that he is “crazy” enough not to change direction, so that the other player will. But in our case these drivers have millions of people in the cars with them, so-called fiscal hostages.

English: Two Knights Jousting Deutsch: Ritterl...

English: Two Knights Jousting Deutsch: Ritterlicher Turnier-Zweikampf (Photo credit: Wikipedia)

Political scientists have used this game to explain nuclear “brinkmanship” during the Cold War, and the Cuban Missile Crisis, but it also applies to the neglected and disparaged art of political compromise–especially when a serious deadline looms. (more…)

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